Regulation and License

eToro’s brokering services are provided by eToro (Europe) Ltd., a registered Cypriot Investment Firm (CIF). The company’s registration number is HE20058. eToro Europe is regulated by the Cyprus Securities & Exchange Commission (CySEC) under license number 109/10. In the UK, eToro UK (company registration number 7973792) is authorized and regulated by the Financial Conduct Authority (FCA), under firm reference number 583263. eToro (Europe) Ltd. and eToro (UK) Ltd. both operate under and comply with the Markets in Financial Instruments Directive (MiFID).

eToro and Brokers

PLEASE NOTE All CLIENTS UPON FUNDING THEIR ACCOUNTS BECOME CLIENTS OF ETORO (EUROPE) LTD. AUTHORISED AND REGULATED BY THE CYPRUS SECURITIES AND EXCHANGE COMMISSION (CYSEC). UK PREMIUM CLIENTS MAY APPLY TO BECOME CLIENTS OF ETORO (UK) LTD, AUTHORISED AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY (FCA) – SEE FURTHER BELOW.

eToro (Europe) Ltd.

(eToro Europe), having its registered office at 4 Profiti Ilia Street, Germasogeia, Limassol, Cyprus, is licensed to provide the investment services of reception and transmission of orders, execution of orders on behalf of clients, dealing on own account in relation to one or more financial instruments, and portfolio management. It is also licensed to provide the ancillary service of safekeeping and administration of financial instruments, including custodianship and related services. eToro Europe deals with you either as principal or as an agent. When we act as an agent, we will use another executing broker, including a non-affiliated third party, to execute our clients’ orders.

eToro (UK) Ltd.

(eToro UK) having its registered office at 5 Fleet Place, London EC4M 7RD and principal place of business at 24th floor, One Canada Square, Canary Wharf, London E14 5AB , is licensed to deal or make arrangements in investments as agent or principal on a matched principal basis and hold client money. eToro UK deals with you either as principal or as an agent. When we act as an agent, we will use another executing broker, including eToro Europe or a non-affiliated third party, to execute our clients’ orders.

For full information on the services and instruments eToro UK is licensed to provide please click here

eToro UK’s financial services are provided on request to Premium Clients which are residents of the United Kingdom. To become a client of eToro UK, you need to deposit $5,000 with eToro (Europe) Ltd and be a UK resident. For more information, and to apply, please contact us at ukpremium@etoro.com.

The Terms and Conditions you agreed on upon registration stipulated which entity and regulation is applicable to you. This information also appears in your account settings.

MiFID (Markets in Financial Instruments Directive) is a European Union law, which provides a harmonized regulatory regime for investment services across the European Economic Area. The main objectives of the Directive are to increase competition and client protection in investment services. The activities and services of both eToro UK and eToro Europe comply with MiFID requirements. All documentation and procedures are consistent with MiFID rules.

Copy Trading

CopyTrading™ is the service, generated automatically, under which you instruct us to copy for your account certain trades executed by another user of the Services (the “Lead Trader”). The CopyTrading™ functionality is provided to you by eToro Europe, weather you are a client of eToro Europe or eToro UK. You can read more about the agreement between our parties in our Terms and Conditions. Before you can engage in CopyTrading™, eToro Europe will assess what trading strategies are suitable for you, including imposing limitations on your CopyTrading™ activities or blocking them altogether.

Jurisdictions

Europe

UNITED KINGDOM

eToro (UK) Ltd. is regulated by the Financial Conduct Authority (FCA) and retains a cross border license from the FCA to offer its services in member states of the European Economic Area, for detailed list of countries and permissions, please click here.

eToroUSA is operated by Tradonomi LLC, which is regulated by the National Futures Association (NFA). Currently eToroUSA is not active and we do not accept clients from the USA.

Regulatory Disclosures

Client Categorization

The Markets in Financial Instruments Directive (MiFID) requires the categorization of clients as Retail Clients, Professional Clients or Eligible Counter Parties. eToro Europe and eToro UK categorize all clients as Retail Clients when opening a trading account, which have the highest level of protection (such as eligibility to the Investor Compensation Fund, Best Execution, and Safeguarding Clients Assets etc). Clients are allowed to request to be reclassified, in writing to eToro Europe/eToro UK, as applicable, who may recategorize you according to the specifications, conditions, and procedures of MiFID. “Retail Client” is a client who is not a professional client or an eligible counter party. Eligible Counter party is a professional client or legal entity who provides investment services that involve the reception and transmission or the execution of orders. Clients under this category have the lowest level of protection. Professional Client is a client who possesses the experience, knowledge and expertise to make their own investment decisions and properly assess the risks that they incur and must comply with the following criteria: Α. Categories of clients who may be considered to be professionals: The following shall be regarded as professionals in relation to all investment services and activities and financial instruments:

Entities which are required to be authorized or regulated to operate in the financial markets. The list below should be understood as including all authorized entities carrying out the characteristic activities of the entities mentioned: entities authorized by a member state under a European Community Directive; entities authorized or regulated by a member state without reference to such Directive; and entities authorized or regulated by a non-Member State

Credit institutions;

Registered Investment Firms;

Other authorized or regulated financial institutions;

Insurance undertakings;

Collective investment schemes and management companies of such schemes;

Pension funds and management companies of such funds;

Commodity and commodity derivatives dealers;

Other institutional investors.

Locals

Large undertakings meeting two of the following size requirements, on a proportional basis:

balance sheet total at least: 20.000.000 euro

net turnover at least: 40.000.000 euro

own funds at least 2.000.000 euro

National and regional governments, public bodies that manage public debt, central banks, international and supranational institutions such as the World Bank, the Internal Monetary Fund, the European Central Bank, the European Investment Bank and other similar international organizations.

Other institutional investors whose main activity is to invest in financial instruments, including entities dedicated to the securitization of assets or other financing transactions. They must however be allowed to request non professional treatment and eToro Europe/eToro UK, as applicable, may agree to provide a higher level of protection.

It is the responsibility of the client, considered to be a professional client, to ask for a higher level of protection when it deems it is unable to properly assess or manage the risks involved. This higher level of protection will be provided when a client who is considered to be a professional enters into a written agreement with eToro Europe/eToro UK, as applicable, to the effect that it shall not be treated as a professional for the purposes of the applicable conduct of business regime.

Β. Clients who may be treated as professionals on request: Clients other than those mentioned above, including public sector bodies and private individual investors, may also be allowed to waive some of the protections afforded by the conduct of business rules of eToro Europe/eToro UK, as applicable. Both eToro Europe and eToro UK are therefore allowed to treat any of the above clients as professionals provided the relevant criteria and procedures are fulfilled. Such as that the client is capable of making his own investment decisions and understanding the risks involved (fitness test). The company reserves the right to decline any of the above requests for different categorization Requests for more information and re-categorization shall be submitted to

Anti Money Laundering Policy

Both the UK and Cyprus have enacted the appropriate legislation and taken effective regulatory and other measures by putting in place suitable mechanisms for the prevention and suppression of money laundering, terrorist financing activities, and financial crime. Moreover, both countries are committed to apply all the requirements of international treaties and standards in this area and, specifically, those deriving from the European Union Directives. UK and Cyprus legislation has been harmonized with the Third European Union Directive on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing (Directive 2005/60/ΕC). As regulated firms, eToro Europe and eToro UK are both committed to follow the relevant regulations and to ensure that appropriate measures are taken to combat money laundering, terrorist financing activities, and financial crime.

Capital Adequacy

In accordance with the applicable regulations, both eToro Europe and eToro UK need to have own funds, which are at all times satisfy the minimum capital adequacy ratios of the European Capital Requirements Regulation. An investment firm must have in place sound, effective and complete strategies and processes to assess and maintain on an ongoing basis the amounts, types and distribution of internal capital that they consider adequate to cover the nature and level of the risks to which they might be exposed. These strategies and processes are subject to regular internal review, to ensure that they remain comprehensive and proportionate to the nature, scale and complexity of the activities of the Firm.

Safeguarding of Clients Assets

We keep our clients’ funds in a segregated account, such that the clients’ funds will be separated from our own assets. Such separation of accounts is being supervised both internally and externally. We operate only with reputable payment institutions and payment providers such as Barclays Bank, Coutts and other first tier banks.

eToro (Europe) Ltd., a Financial Services Company authorised and regulated by the Cyprus Securities Exchange Commission (CySEC) under the license # 109/10.
eToro (UK) Ltd, a Financial Services Company authorised and regulated by the Financial Conduct Authority (FCA) under the license FRN 583263.

CFDs are leveraged products and are considered to be ‘speculative’ and ‘complex’ products.
Trading in CFDs related to foreign exchange, commodities,indices and other underlying variables, carries a high level of risk and can result in the loss of all of your investment. They are difficult to understand and are appropriate only for experienced investors.
You should not invest money that you cannot afford to lose. You should seek advice from an independent and suitably licensed financial advisor and ensure that you have the risk appetite, relevant experience and knowledge before you decide to trade.
Under no circumstances shall eToro have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever.
Cryptocurrencies markets are unregulated services which are not governed by any specific European regulatory framework (including MiFID). Therefore when using our Cryptocurrencies Trading Service you will not benefit from the protections available to clients receiving MiFID regulated investment services, such as access to the Cyprus Investor Compensation Fund (ICF)/the Financial Services Compensation Scheme (FSCS) and the Financial Ombudsman Service for dispute resolution.